Mastercard (NYSE:MA) turned in better-than-expected Q4 earnings and revenue even as its gross dollar volume fell short of the average analyst estimate. Shares slipped 0.7% in Wednesday premarket trading.
Q4 gross dollar volume of $2.35T vs. $2.31T in Q3 and compared with the Visible Alpha consensus of $2.37T.
Q4 adjusted EPS of $3.18, topping the average analyst estimate of $3.08, fell from $3.39 in the prior quarter and increased from $2.65 a year ago.
Q4 net revenue of $6.55B, exceeding the $6.48B consensus, climbed from $6.53B in Q3 and $5.82B in Q4 2022.
Payment network revenue increased 9% Y/Y, or 7% on a currency-neutral basis, driven by growth in gross dollar volume, cross-border volume, and switched transactions.
Cross-border volume growth of 18% Y/Y, local currency basis, compared with a 21% pace in the previous quarter.
Switched transactions rose 12 % Y/Y vs. the 15% pace in Q3.
Q4 adjusted operating expenses of $2.9B rose from $2.7B in Q3 and $2.6B in Q4 2022.
Q4 adjusted operating margin dropped to 58.0% from 58.8% in the prior quarter and improved from 57.0% a year ago.
Looking past Q4, for January-to-date, switched transactions rose 11% vs. 13% in December and 11% in October, and cross-border volume rose 18% vs. 16% in the prior month and 20% in October.
Conference call at 9:00 AM ET.